Money

With U.S. stock indexes rising and the economy showing signs of life, business jet buyers seem to be returning to the market. Much like horses at the start of a race, they appear to be champing at the bit, waiting impatiently for the starting gate to open.

In these days of sluggish economic recovery and historically low interest rates, the biggest competition for those offering business jet financing is a four-letter word: cash. Those who still have the resources to buy aircraft often prefer to pay cash rather than finance, for the simple reason that they now have few other attractive places to put their money.

Considering what 2011 served up in terms of worldwide calamity–from government overthrows to devastating natural disasters to a global debt crisis–it's a wonder anyone had the confidence and wherewithal to buy a corporate jet. Yet the year saw a continuation of 2010's resurgence of buyer activity. This mild but sustained trend is providing a sense of relief for many sellers.

Third-quarter pretax earnings at Berkshire Hathaway’s “other services” division, which includes FlightSafety International and NetJets, climbed 15 percent from the same quarter last year, to $281 million.

If the super computers that some blame for Wall Street’s recent wild swings were used to trade aircraft, it’s likely they would be programmed to buy right now. But aircraft purchases and sales still occur the old-fashioned way, which can involve deal-stalling high emotions and conflicting personalities.

One of the first things you hear about when you begin using business aviation in the U.S. is the mysterious but important distinction between Part 91 and Part 135 operations. Many people still think about the difference in simplistic terms: Part 91–good; Part 135–bad. The facts are considerably more complicated.

Activity in the preowned market continues unabated, yet at a measured pace. In fact, inventory levels are now about where they were in October 2008 (and climbing for almost a year), when the calamity on Wall Street reverberated around the globe and dealt a devastating and unprecedented blow to the new and used aircraft business.